Farm Income - Crop Insurance Proceeds

Article ID: 58909  

Question
Farm Income - Crop Insurance Proceeds

Answer

In general, you must report crop insurance proceeds in the year you receive them. Federal crop disaster payments are treated as crop insurance proceeds. However, you can elect to include them in the current or year of damage per Pub 525. To make this election, attach a statement to your return.  See IRS Pub. 225 for a description of the proceeds for which an election can be made and for what you must include in your statement. 

Generally, if you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds (including Federal disaster payments).

For more information see  http://www.irs.gov/pub/irs-pdf/i1040sf.pdf


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Views: 1289 Created on: Jun 15, 2013